9. The period of high inflation and low economic growth is termed as :

stagnation

take-off stage in economy

stagflation

none of these3

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10. Inflation can be contained by :

surplus budget

increase in taxation

reduction in public expenditure

all the above

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11. Which of the following are definite implications of a fall in inflation?1. Prices have fallen2. Prices are increasing more slowly than before3. Food supply has increased4. There is industrial stagnation

1 and 3

1 only

2 only

1, 3 and 4

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12. Inflationary Gap is a situation characterised by :

excess of Aggregate Demand over Aggregate Supply at the full employment<br/>level

gap between Galloping Inflation and Runaway Inflation

Inflation coupled with recession

Inflation that usually prevails in a developing country

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13. A high rate of inflation tends to worsen balance of payment because :